Bob has £20,000 in savings looking for better returns.
Earns £940 in interest (4.70% rate)
Earns £1,255 total (£550 from URCASH 11% + 1% fee + £705 from bank)
Needs £5,000 for a car and has £1,000 in savings.
Pays £1,000 in loan interest (20% rate)
Earns £47 on savings (4.70% rate)
Pays £650 in loan costs (12% + 1% fee)
Earns £110 on savings (12% - 1% fee)
Needs £1,000 for a bike to save on commute and transport costs.
Difficult to get approved
High fees and interest (~24%)
Pays £130 in total costs (12% + 1% fee)
Saves £830 annually after loan costs
Daily Earns £99 and £4 spent on commuting to work.
Traditional: £940
URCASH: £1,255
Additional Earnings: £315
Effective Savings Rate 6.275%
Loan Savings: £350
Extra Savings Interest: £63
Total Benefit: £413
Effective Borrowing Rate 8.26%
Loan Cost: £130
Transport Savings: £960
Net Benefit: £830
Effective Borrowing Rate 11%